re: Newbie investing in individual stocks(Posted by jso0003 on 2/12/13 at 6:13 pm to Jwodie)

Online sites are plenty simple enough to buy and sell individual stocks, but you'd be much better off doing some reading about the market and deciding against investing in individual stocks.(recommend a book like "a random walk down wall street")

re: Newbie investing in individual stocks(Posted by LSUtigerME on 2/12/13 at 6:55 pm to Maniac979)

quote:Stay out of individual stocks. Look at ETFs.

Good advice. I'm going this route, although I do have a fair amount of individual stocks. However, these are all long buy and hold type stocks for me, most with dividends. I have no intention to "day trade".

As for the online sites, they are very easy to use. It really comes down to features and cost depending on number of trades. Most are pretty similar. I personally use sharebuilder because it has $4 automatic trades (only on Tuesdays), no minimum, free dividend reinvestment, and instant transfers with Capital One.

re: Newbie investing in individual stocks(Posted by Jwodie on 2/12/13 at 7:11 pm to LSUtigerME)

I don't understand the consensus advising not to purchase individual stocks whatsoever. I'm not looking to "day trade", merely diversify my current assets, which consist nearly entirely of a 401k and liquid savings. Hypothetically speaking, If I want to throw some extra capital into an individual stock such as GE, Exxon or even Apple, with a goal of holding for a while, why is that not advisable...?

re: Newbie investing in individual stocks(Posted by gatorsimz on 2/12/13 at 7:29 pm to Jwodie)

quote:Hypothetically speaking, If I want to throw some extra capital into an individual stock such as GE, Exxon or even Apple, with a goal of holding for a while, why is that not advisable...?

I say go for it. People say to buy an index or ETF because they have historically outperformed those trying to pick individual stocks. I own mutual funds, ETFs, and individual stocks. Just do your due diligence on the company. I'd start by investing in a mature megacap like those you've mentioned. Good luck.

re: Newbie investing in individual stocks(Posted by OFWHAP on 2/12/13 at 7:39 pm to Jwodie)

quote: Hypothetically speaking, If I want to throw some extra capital into an individual stock such as GE, Exxon or even Apple, with a goal of holding for a while, why is that not advisable...?

If you REALLY want to, then do it. However most people suck at picking individual securities. Even among professional fund managers (who are supposed to be expert investors), around half tend to underperform the market.

re: Newbie investing in individual stocks(Posted by Rockyn on 2/12/13 at 9:18 pm to gatorsimz)

quote:Just do your due diligence on the company.

Why bother with any diligence? The market has infinitely better resources than the amateur investor (and 99% of MT's resident pickers), and even if that wasn't the case, what's he going to do with any piece of information, be it a quick ratio review or qualitative news piece, that the market didn't price in effectively light-years ago?

If he's set on equity exposure via stocks then more pragmatic advice is realistically for him to throw a diversified set of darts and work his way from there.

re: Newbie investing in individual stocks(Posted by Jwodie on 2/12/13 at 9:57 pm to RickAstley)

quote:I am in identical shoes with you. One year out of work, with only 401k and savings holding all of my earnings outside of expenses. I will be paying attention to your threads

Gotta start somewhere, right? I just don't understand the consensus advocating against investing in a few individual established stocks I feel are strong enough to at the very least sustain their value and hopefully steadily grow. In addition to throwing some dollars at some prospective stocks with large growth potential (medical marijuana for example). Diversity is key, but investing in stocks should be "fun" as well of course while being aware of your tolerance for loss.

re: Newbie investing in individual stocks(Posted by AUtigerNOLA on 2/12/13 at 10:13 pm to Jwodie)

Its hard to make money on individual stocks unless you really have some great knowledge of the particular industry you are looking in. You have to be on top of stocks too. Always look at the balance sheet and income statements. Pay attention to the debt, cash, and revenue. Determine if there is growth. It takes a little time.

One stock I would suggest looking at right now is RF. Big bank, low stock price. They have been consistently outperforming the estimates by analysts the past year or so. They have a good thing going right now and it won't stay in the single digits(cheap) for long IMO. I really think it could potentially get into the normal bank range(20s and 30s) over time. Do some research and good luck.

re: Newbie investing in individual stocks(Posted by Jwodie on 2/12/13 at 10:17 pm to AUtigerNOLA)

quote:One stock I would suggest looking at right now if RF. Big bank, low stock price. They have been consistently outperforming the estimates by analysts the past year or so. They have a good thing going right now and it won't stay in the single digits(cheap) for long IMO. I really think it could potentially get into the normal bank range(20s and 30s) over time. Do some research and good luck.

This is a perfect example of an "individual" stock I'd like to throw some money into...

If you're not going to day trade and want a hands-off investing experience, do not invest in individual stocks. ETFs are doing well, and I would also look to European equities for returns, if possible.

re: Newbie investing in individual stocks(Posted by gatorsimz on 2/13/13 at 7:56 am to Rockyn)

quote:Why bother with any diligence? The market has infinitely better resources than the amateur investor (and 99% of MT's resident pickers), and even if that wasn't the case, what's he going to do with any piece of information, be it a quick ratio review or qualitative news piece, that the market didn't price in effectively light-years ago?

I would agree if the OP intended to actively trade stocks but he's looking to buy and hold. Since he's looking to invest and not trade, due dillegence is important. Nobody should jump blindly into a long term investment.

re: Newbie investing in individual stocks(Posted by AUtigerNOLA on 2/13/13 at 11:07 am to matthew25)

quote:I've owed RF (former Union Planters, former Magnolia Federal) for many years. Up to $35 per share, down to $3 per share. At just under $8, hoping it gets bought out by one of the big'uns

You must of been holding on to RF since before 2006, when AMSouth merged and became Regions. Yes RF tanked after 2008 along with the majority of banks. I am sorry for you loss

They have new leadership now and recently sold off their brokerage firm(Morgan Keegan). It got down to as low at $2.80 before picking up steam at the end of 2011. Banks do usually get bought out in the single digit ranges but I dont feel like RF will get sold to anyone, just MO. If one of the big banks decided to and deal gets worked out, it would be by far a top 5 largest bank and biggest player in the southeast. Doubtful though I think Regions will start making a comeback now.